All Questions
Tagged with loans interest-rate
84
questions
1
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1
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2k
views
Formula for calculating the monthly payment for a Personal Contract Purchase
How can I calculate the monthly payment for a PCP (Personal Contract Purchase) when given the variables below?
'Amount to be financed' - finance amount
APR (annual percentage rate - %)
Length of ...
- 13
4
votes
1
answer
217
views
Can banks charge a lower interest rate for loans than for their fixed term savings account and still make profit?
A friend of mine got a loan of 1,000,000 at an interest rate of 10.6% per year for three years and then deposited that 1 million at 3-year fixed-term non-accessible savings account with a return ...
0
votes
2
answers
107
views
Mathematical method to minimize weighted interest rate on a set of student loans for a given payment? [duplicate]
See image attached. I graduated back in May. Even though my loans are in forbearance right now due to COVID and I'm still in my grace period for payments, I wanted to get a head start on figuring out ...
2
votes
5
answers
419
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Downside of having a zero-interest loan for long time
I am able to get a zero interest loan (APR 0%) of €10k for my small business and I have to decide the debt repayment period (12-60 months).
Mathematically, because interest rate is zero I should ...
- 121
0
votes
0
answers
42
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what is the actual OBFR loan rate fee?
The OBFR for March 13 2020 was 1.10%. When a company takes a 1 million over night loan, so they pay 1.1% fee of $11,000, or is it annual like credit card and mortgage where the 1.1% gets divided by ...
- 742
1
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1
answer
400
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Calculating Interest Rate From EMI
Suppose there is a loan with equated monthly installments. If I know the loan period, loan amount and equated monthly installment amount, is there a way to calculate the interest rate?
EMI= a * (1 +...
user93997
2
votes
2
answers
159
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How to get the effective yield?
I have a system that calculates the effective yield. The problem is what formula does the system used to calculate the effective yield. I am trying to convert the system into a mobile application. I ...
1
vote
2
answers
1k
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Residential Mortgage Tilt Effect
The way I understand the mortgage tilt effect is that the lender "prices in" the expected rate of inflation into the contract borrowing rate, so that the lender is compensated in the earlier years of ...
- 449
0
votes
1
answer
69
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How to create a derivative fixed rate loan?
Just curious. Someone mentioned he can only find variable rate loans, no fixed-rate option (somewhere in Europe). Which I find strange, there has to be some price that makes such an offering viable. ...
- 133
3
votes
2
answers
304
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Calculating Annuities With Different Compounding period and Interest Period
Can anyone Help me solve this?
In July 2010, Mike deposits $100 semiannually into an account compounding quarterly at 7% nominal annual interest for three years.
In July 2013, he increases the ...
- 31
1
vote
1
answer
193
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Taking a loan with a low interest and putting it into a Savings deposit with High interest [duplicate]
Can I make money from taking out a loan from a country with a low interest rate (such as Switzerland, that has an interest rate for loans from 4.9%) and put it into a fixed savings deposit account in ...
1
vote
1
answer
788
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Formula for previous months interest payment and balance - Reverse Amortization
I am trying to resolve an issue I am having where a system calculated incorrect additional payments on a loan for a couple of months, resulting in the new current balance being incorrect. I want to ...
- 113
5
votes
1
answer
1k
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Should I take advantage of "interest-free" credit when buying something? [duplicate]
If I buy something like a smartphone or a new PC, when you have these choice:
Pay all the cost at the moment.
Pay it in 6/12/18 months (with loan but without any interest rate and any extra cost).
...
- 153
1
vote
5
answers
2k
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Reasons for not taking loans with negative interest rate
At the moment, negative interest rates sounds totally obscure. Basically, the lender has to pay the borrower for lending money from him?!?
If this is the case, why shouldn't I just go out to take ...
1
vote
3
answers
425
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What's the interest rate in this example of irregular payments?
Loaned out $10K, with the following payments (like, these are all the payments there will ever be)
Period 1 2 3 4 5 6
$0 $0 $0 $0 $26K $4K
How would I ...
- 161